Homebuilder Stocks: Near-Term Strength; Hurdles Ahead

After months of lagging, homebuilder stocks are on the mend. But red flags abound on long-term charts.

As with many sectors of the market, homebuilders have taken some lumps over the past few months. And as with many of the fallen, homebuilder stocks are making a comeback. In the short term, there is an argument to be made for a return to the multiyear highs made earlier this year. The problem is that if and when they get there, a host of negative technical issues await.